diff --git a/lib/BaseSolver.ts b/lib/BaseSolver.ts
index e071bf8..ecfa4af 100644
--- a/lib/BaseSolver.ts
+++ b/lib/BaseSolver.ts
@@ -39,13 +39,14 @@ export class BaseSolver {
 
   /** DO NOT OVERRIDE! Override _step() instead */
   step() {
-    if (!this._setupDone) {
-      this.setup()
-    }
     if (this.solved) return
     if (this.failed) return
-    this.iterations++
     try {
+      if (!this._setupDone) {
+        this.setup()
+      }
+      if (this.solved || this.failed) return
+      this.iterations++
       this._step()
     } catch (e) {
       this.error = `${this.getSolverName()} error: ${e}`
diff --git a/tests/setup-failure.test.ts b/tests/setup-failure.test.ts
new file mode 100644
index 0000000..629e4cb
--- /dev/null
+++ b/tests/setup-failure.test.ts
@@ -0,0 +1,105 @@
+import { test } from "bun:test"
+import { strict as assert } from "node:assert"
+import { BaseSolver } from "../lib/BaseSolver"
+
+class SetupFailureSolver extends BaseSolver {
+  setupCalls = 0
+  stepCalls = 0
+  setupError = new Error("invalid input during setup")
+
+  override _setup() {
+    this.setupCalls++
+    throw this.setupError
+  }
+
+  override _step() {
+    this.stepCalls++
+  }
+}
+
+for (const method of ["step", "solve"] as const) {
+  test(`${method} records setup failure and rethrows the original error`, () => {
+    const solver = new SetupFailureSolver()
+    assert.throws(
+      () => solver[method](),
+      (error) => error === solver.setupError,
+    )
+    assert.equal(solver.failed, true)
+    assert.equal(solver.solved, false)
+    assert.equal(solver.iterations, 0)
+    assert.equal(solver.iterations, solver.stepCalls)
+    assert.equal(solver.stepCalls, 0)
+    assert.equal(solver._setupDone, false)
+    assert.equal(solver.error, `SetupFailureSolver error: ${solver.setupError}`)
+  })
+}
+
+test("step does not retry setup after initialization has failed", () => {
+  const solver = new SetupFailureSolver()
+  assert.throws(() => solver.step())
+  assert.doesNotThrow(() => solver.step())
+  assert.equal(solver.setupCalls, 1)
+  assert.equal(solver.stepCalls, 0)
+})
+
+for (const state of ["solved", "failed"] as const) {
+  test(`step does not initialize an already ${state} solver`, () => {
+    const solver = new SetupFailureSolver()
+    solver[state] = true
+    assert.doesNotThrow(() => solver.step())
+    assert.equal(solver.setupCalls, 0)
+    assert.equal(solver.iterations, 0)
+  })
+
+  test(`setup can mark a solver ${state} without running a step`, () => {
+    class TerminalSetupSolver extends BaseSolver {
+      override _setup() {
+        this[state] = true
+      }
+
+      override _step() {
+        assert.fail("a terminal solver must not perform work")
+      }
+    }
+    const solver = new TerminalSetupSolver()
+    solver.step()
+    assert.equal(solver[state], true)
+    assert.equal(solver._setupDone, true)
+    assert.equal(solver.iterations, 0)
+  })
+}
+
+test("successful initialization still runs once across multiple steps", () => {
+  class SuccessfulSolver extends BaseSolver {
+    setupCalls = 0
+    override _setup() {
+      this.setupCalls++
+    }
+    override _step() {
+      this.solved = this.iterations === 2
+    }
+  }
+  const solver = new SuccessfulSolver()
+  solver.solve()
+  assert.equal(solver.setupCalls, 1)
+  assert.equal(solver.iterations, 2)
+  assert.equal(solver.solved, true)
+  assert.equal(solver.failed, false)
+})
+
+test("step exceptions retain their existing failure behavior", () => {
+  const failure = new Error("step failure")
+  class StepFailureSolver extends BaseSolver {
+    override _step() {
+      throw failure
+    }
+  }
+  const solver = new StepFailureSolver()
+  assert.throws(
+    () => solver.step(),
+    (error) => error === failure,
+  )
+  assert.equal(solver.failed, true)
+  assert.equal(solver.iterations, 1)
+  assert.equal(solver.error, `StepFailureSolver error: ${failure}`)
+})